Tesla Motors wants to set up in Shanghai as the base for its manufacturing facilities in China.

According to Bloomberg, Tesla is rumored to have signed a non-binding agreement with Jinqiao Group, a Shanghai government-owned company, on building production facilities in the city.

Both parties would invest $4.5 billion toward the $9 billion project, with Jinqiao Group required to provide Tesla Motors with ample lands to build the factory. If the rumors are true, the investment would be larger than the $5.5 which Disney splashed out to construct its Shanghai theme park.

Jinqiao Group says currently no deal has been reached with Tesla.

Production in China would help Tesla avoid a 25 percent import levy on imported cars, allowing the company to better compete against such companies as BMW, Audi and other manufacturers occupying the luxury segment of the market.